VIISNURK

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO THE FINANCIAL RESULTS Q3 2000



AS Viisnurk net sales in Q1 2000 amounted to EEK 59.1 mln and net 

profit EEK 5.9 mln. The company's turnover increased ca 51% y-o-y 

(EEK 39.2 mln in Q1 1999) and net profit by approximately 2.7 times 

y-o-y (EEK 2.2 mln in Q1 1999).

As of 31.03.2000 AS Viisnurk does not own any subsidiaries, thus the 

financial reports indicate only the results of the parent company.



AS Viisnurk quarterly turnover by sub-units (in EEK mln):



                    		2000      1999

Ski factory         		8.9       6.2

Furniture factory   		27.3      15.7

Particle board factory   	20.3      13.1

Heat energy         		1.5       2.0

Other               		1.1       2.2



Due to seasonal effects, the ski factory's turnover in Q1 was 

continuously modest. However, the factory has received sufficient 

amount of orders for the coming season to enable to continue the 

production at full capacity.

Due reorientation to high growth-potential clients and markets in H2 

1999, the furniture factory (i.e. co-operation with IKEA) has reached 

a stable growth in output capacity and works within the planned 

profit margin. The furniture factory's turnover has almost doubled in 

a year.

Particle board factory's turnover has seen growth due to more active 

construction activity (due to general improvement in economy) and

restructuring of European markets. Sales of higher-priced "Isotex"  

boards has constantly increased in neighboring countries.

Among other activities the company operates the sawmill (bought in 

1999); as of end-March the sawmill will start production in two 

shifts. In addition to providing lumber for the parent company's sub-

units, the company also plans to sell the products to other clients.



Among most substantial changes in AS Viisnurk accounting balance 

sheet, the volume of inventories (due to seasonal nature of ski 

factory's activities) increased by EEK 11.3 mln, and ca EEK 8.6 mln 

of short-term loans taken for purpose of financing the growth of 

inventories.





Andrus Aljas

CFO

+372 44 78 355